How Much House Can I Afford in Michigan? A First-Time Buyer’s Guide
If you’re buying your first home in Michigan, there’s one big question on your mind:
“How much house can I actually afford?”
It’s a smart question — and the answer is more than just a number. It’s about understanding your monthly budget, how lenders calculate affordability, and what kind of home you can get in different parts of Michigan.
We’ll break it all down for you in plain English. No confusing mortgage talk. Just clear, helpful advice from your best friend in home finance.
Step 1: Know What Lenders Look At
When you apply for a mortgage in Michigan, lenders look at a few key things:
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Your income
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Your monthly debts (like student loans or car payments)
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Your credit score
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Your down payment amount
They’ll use this to calculate something called your Debt-to-Income ratio (DTI). Most lenders want your monthly debts (including your future mortgage) to be under 43% of your gross income — but staying under 36% is even better.
Example:
If you make $5,000/month before taxes:
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36% of that = $1,800/month total for housing + other debts
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If your only other debt is a $300 car payment, that leaves $1,500/month for a mortgage payment
Step 2: Michigan Market Snapshot
Michigan home prices vary a lot by location:
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Grand Rapids: $250K – $300K for a move-in-ready home
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Lansing: $180K – $230K for first-time buyers
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Kalamazoo: $160K – $220K is typical
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Metro Detroit suburbs: $200K – $350K depending on the area
You can absolutely find affordable homes in Michigan — especially if you’re open to different neighborhoods or nearby cities.
✅ Step 3: Don’t Forget First-Time Buyer Programs
As a Michigan first-time buyer, you may qualify for:
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FHA Loans: Just 3.5% down and flexible credit requirements
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Conventional 3% Down Loans: For qualified borrowers
- Freddie Mac BorrowerSmart: Grant for qualified borrowers
These programs can boost your buying power and lower your upfront costs. And yes — we help you apply for all of them.
NEW! Only 1% Down!
Did you know JPAL Mortgage now offers a 1% down payment program for qualified buyers?
That means if you’re buying a $200,000 home, your down payment could be just $2,000.*
With our unique 1% down conventional loans, you contribute 1% and your lender pays an extra 2%, totaling 3% down at closing. Additionally, gift funds and down payment assistance can be used to cover your entire down payment. This is an excellent way to achieve homeownership without straining your finances.
Let’s see if you qualify — or call us at 616-465-5725. Your dream home might be closer than you think!
*Program offered by United Wholesale Mortgage, a current wholesaler of JPAL Mortgage. The principal, interest and MI payment on a $200,000 30-year Fixed-Rate Loan at 6.625% and 97% loan-to-value (LTV) is $1,370.62. The principal and interest payments, which will continue for 360 months until paid in full, do not include taxes and home insurance premium, which will result in a higher actual monthly payment. Rates current as of 06/10/25. United Wholesale Mortgage pays the lesser of 2% or $7,000 of the down payment. Borrower pays 1% of the down payment (or remaining down payment needed if 2% exceeds $7,000). Subject to borrower approval. Some exclusions may apply.
Want to Know What You Can Afford?
Here’s the thing: online calculators are helpful, but nothing beats a real conversation.
We’ll walk through your income, credit, and budget to help you know exactly:
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What price range fits your life
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Which programs you qualify for
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How much you’ll need upfront
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What your monthly payments will look like
Ready to get started? Book a free call or text us at (616) 465-5725.
Grab your free relocation tool kit here!
JPAL Mortgage is proudly based in Michigan, where its two owners were born and raised! We love this state and have traveled it far and wide. It’s a passion of ours to help make a smooth landing here in Michigan!
JPAL Mortgage – Your best friend in home finance.
All loans require complete underwriting approval, including satisfactory appraisal and clear title work. Interest rates and closing costs are subject to change. NMLS ID #2189752 | Equal Housing Opportunity